After opening 500 kiosks in 4 years, Pickup Coffee will now start making money
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In celebration of its fourth anniversary, celebrated on March 19 in Rockwell, Pickup Coffee of the kiosk format announced that it has more than 500 stores, new store formats, an improved operating system, and is open for financing.
“We are the fastest growing, proud Filipino coffee chain with over 500 stores nationwide,” Francis Flores, Managing Director of Pickup Coffee, said. “The 500 stores we have now are all still owned by businesses,” he said.
“We are launching franchising soon,” he said. Speaking to BusinessWorld, he added, “We believe we could be more than 500 in the Philippines. Just imagine, if we could grow that fast on our own, lalo na ‘pag may (we could be even more if there were) shareholders.”
“We don’t even stop opening stores managed by the company,” he clarified. “Now that we have 500 stores, we feel that anything is possible.”
Speaking of the speed of its growth in just four years, he said, “Accessibility and distribution are critical to growth. We want to be everywhere, as quickly as possible.”
THERE IS A PLAN FOR THAT
The fact that they have an app that customers can use to order (and access additional services) has helped a lot: “Our app is the main functional tool, not just a marketing feature,” he said. “It’s easier to order, reduces queue times, improves store efficiency, and gives us data to make better decisions – from menu development to location strategy. Being at the forefront of technology allows us to scale smarter while improving the customer experience.”
On changing the way Filipinos consume coffee, he said that in the past years, premium espresso was very high quality for the average Filipino. “The average Filipino can’t drink it every day. What we saw, it became a daily symbol,” he said during the interview.
In an email, he added, “Pickup Coffee has raised the bar for what espresso can be – premium in taste, but accessible in price and availability. With efficient formats, a grab-and-go model, and technology-enabled functions, we are able to make quality coffee a part of everyday life for more people.”
Since their coffee is less than P100 (unlike those offered by foreign coffee chains), Mr. Flores talked about how they are able to keep prices low. In an email he said: “Affordability has been thoughtfully built into our business model from the beginning. We are able to keep prices affordable by designing efficient store formats, efficiency, leveraging technology to improve productivity, and measuring procurement responsibly. This allows us to offer high-quality espresso-based drinks at affordable prices – without compromise.”
BEING BIG BY STAYING SMALL
As mentioned above, Pickup operates within a kiosk model, with a grab-and-go format. “The small format model works because it uses a lot of money, it’s flexible, and it’s analysed,” said Mr. Flores in an email. “It allows us to quickly enter high-density areas, reduce overhead costs, achieve rapid differentiation of each store, and expand continuously in various cities. This model supports systematic growth, which is essential for long-term sustainability.”
However, during the event, they announced more Pickup Prime locations (two: one at SM Seaside Cebu and Quezon City’s Vertis North). This year, they are adding two more, in BGC and Arca South. Pickup Prime is a larger format store, offering baked goods and coffee, and has seating.
“Premium coffee should be accessible to everyone,” he said in a speech. – Joseph L. Garcia
